Anyone Can Become A Bitcoin Trading House

One of the more interesting trends in the world of Bitcoin and digital currency is the growing interest in public trading places. Whether these trades occur in the online or offline space, there is an increased focus on trading fiat currency against something that has to do with Bitcoin or other digital currencies. Will the Bitcoin trading house concept become the next trend to take the financial world by storm?

What Is A Bitcoin Trading House?

A Bitcoin trading house can come in two different forms: a physical location where people can get together to talk about Bitcoin and digital currency, as well as trade coins in exchange for fiat if needed. But there is also the online version, which would resemble a stock exchange of some sorts, where Bitcoin can be traded for other assets.

To put the physical Bitcoin trading house concept into perspective, this is not something that doesn’t already exist. Various Bitcoin embassies have been erected around the world, and all of their events offer some form of a trading session where the exchange of Bitcoin against fiat can take place. It is important to keep in mind this activity is completely legal, assuming both buyer and seller take their country’s taxation regulation into account.

In fact, a Bitcoin trading house wouldn’t have to be one specific location in a city either, as both buyers and sellers can travel around to keep things decentralized. Now that portable Bitcoin payment terminals – such as the one created by Coinkite – are available to businesses and consumers all over the world, anyone can become a traveling Bitcoin salesman or saleswoman.

When a person can become their own Bitcoin trading house, a new type of financial innovation is created. With our internet-connected devices, we have access to Bitcoin exchanges all over the world to increase our Bitcoin supply when running low. If one plays their cards well, being an entrepreneur traveling from location to location and selling Bitcoin could be quite a profitable way to spend the hours of the day.

In its online form, things would be slightly different, though. Established trading platforms all have the option to add Bitcoin-related instruments to their markets, giving traders an easy option to invest in Bitcoin. Also, Bitcoin holders could diversify their own portfolio by exchanging digital currency for other assets, should they decide to do so.

Uncertainty Regarding Market Growth For Online Platforms

The physical form of a Bitcoin trading house will have plenty of room for growth, as these types of effort are still very localized for the time being. Other than Bitcoin embassies and Bitcoin Meetup groups, there is very little trading action going on in the public space. All of that might change at any time, though.

Online growth, on the other hand, will be a completely different matter. There is no high demand for trading assets against Bitcoin-related instruments right now, as investors will rather buy Bitcoin from an exchange to diversify their portfolio. However, further stabilization of the Bitcoin price could lead to a growing demand for these trading instruments over the next few years.

About The Author

JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he aims to achieve the same level of respect in the FinTech sector.